Act No. 06 of 1935
29th May, 1935
An Act to consolidate and amend the law relating to Co-operative Societies in [the States] of Bihar and Orissa. Whereas it is expedient to facilitate the formation, working and consolidation of co-operative societies for the promotion of thrift, self-help and mutual aid among agriculturists and other persons with common needs, and for that purpose to consolidate and amend the law relating to co-operative societies in [the State] of Bihar [and Orissa]; And whereas the previous sanction of the Governor-General under sub-section (3) of section 80A of the Government of India Act has been obtained to the passing of this Act: It is hereby enacted as follows:-
(1) This Act may be called the Bihar and Orissa Co-operative Societies Act, 1935.
(2) It extends to the whole of [the States] of Bihar [and Orissa] including the Santal Parganas.
In this Act, unless there is anything repugnant in the subject or context,-
The provisions of the Indian Companies Act, 1913 (7 of 1913), shall not apply to registered societies.
(1) Every society now existing which has been registered under the Co-operative Credit Societies Act, 1904 (10 of 1904), or under the Co-operative Societies Act, 1912 (2 of 1912), shall be deemed to be registered under this Act, and its by-laws shall, so far as they are not inconsistent with the express provisions of this Act. continue in force until altered or rescinded.
(2) All appointments, rules and orders made, notifications and notices issued, all transactions entered into and suits and other proceedings instituted under the said Acts, shall be deemed, so far as may be, to have been respectively made, issued, entered into and instituted under, this Act.
All references to the Co-operative Societies Act, 1912 (2 of 1912) occurring in any enactment made by any authority in India and for the time being in force in [the States] of Bihar [and Orissa] shall, in the application of any such enactment to the said [States] be construed as references to this Act,
(1) The [State] Government may appoint a person to be Registrar of Co-operative Societies for the [State] or any portion of it, and may appoint persons to assist such Registrar.
(2) The [State] Government may, by general or special order published in the [Official Gazette], confer,-
(1) Subject to the provisions of this Act, a society which has as its object the promotion of the common interests of its members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act with or without limited liability:
Provided that, unless the [State] Government by general or special order otherwise directs,-
(2) Where the liability of a society is limited, the liability of each member, past member, or the estate of a deceased member shall, on liquidation, be limited to the amount, if any, unpaid on the shares held by such member, or where the liability is limited by guarantee, to the amount of such guarantee, or where it is limited in any other manner, then as may be determined by the rules or by-laws, subject, however, to the provisions of section 32.
(3) Where the liability of a society is unlimited, all members, past members and the estates of deceased members shall, on liquidation, be jointly and severally liable for and in respect of all its obligations, subject, however, to the provisions of section 32.
(1) No society, other than a society of which a member is a registered society, shall be registered under this Act which does not consist of at least ten persons above the age of eighteen years and, where the, primary object of the society is the creation of funds to be lent to its members, unless such persons-
(2) The word 'limited' shall be the last word in the name of every society with limited liability registered under this Act.
(1) An application for the registration of a society shall be made to the Registrar, and shall be accompanied by a copy of the proposed bylaws of the society; and the persons by whom or on whose behalf sub-application is made shall furnish such information in regard to the society as the Registrar may require.
(2) The application shall be signed-
When any question arises whether for the purposes of this Act person is an agriculturist or a non-agriculturist, or whether any person is a resident in a particular town or village or group of villages, or whether two or more villages shall be considered to form a group, or whether any person belongs to any particular tribe, class or occupation, the question shall be decided by the Registrar, whose decision shall be final.
(1) If the Registrar is satisfied that a society has complied with the provisions of this Act and the rules and that its proposed by-laws are not contrary to this Act or to the rules, he may, if he thinks fit, register the society and its by-laws.
(2) If the Registrar refuses to register a society, he shall record his reasons for such refusal.
(3) An appeal shall lie to the [State] Government from an order of the Registrar refusing to register a society, within two months from the date of the receipt of the order by at least one of the applicants.
A certificate of registration signed by the Registrar shall be conclusive evidence that the society therein mentioned is duly registered unless it is proved that the registration of the society has been cancelled.
The registration of a society shall render it a body corporate by the name under which it is registered, with perpetual succession and a common seal and with power to acquire and hold property, to enter into contracts, to institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
(1) Every registered society shall have an address, registered in accordance with the rules, to which all notices and communications may he sent, and shall send notice, in writing, to the Registrar and to the financing bank, if any, of which it is a share-holder and to the Co-operative Federation, if any, of which it is a member, of any change in the said address within fifteen days of such change.
(2) The management of a registered society shall be vested in a managing committee constituted in accordance with the rules.
(3) Every registered society shall keep open to inspection free of charge at all reasonable times at its registered address-
A registered society shall receive deposits and loans from members and non-members only to such extent and under such conditions as may be prescribed by the rules or by-laws.
(1) Except with the general or special sanction of the Register and subject to such restrictions as he may impose, a registered society shall not-
(2) The [State] Government may, by general or special order, prohibit or restrict the lending of money on mortgage of immoveable property by any registered society of class of registered societies.
(3) Where the Register has accorded sanction to a financing bank under the provisions of sub-section (1), a registered society which is a member of such financing bank may, subject to the terms of the sanction and such other terms and conditions as may be prescribed by the Registrar, act as agent for the financing bank and as such agent carry out, with or without any commission, all or any transactions connected with loans or advances made or to be made by the financing bank.
The transactions of a registered society with persons other than members shall be subject to such further prohibitions and restrictions, if any, as the [State] Government may by rules prescribe.
(1) At least thirty-five per cent of the net profits of a registered society shall each year be carried to a reserve fund, provided that the [State] Government may by rule increase or decrease this proportion for any society or class of societies.
(2) The reserve fund shall not be used in the business of the society except to such extent and in such manner as may be prescribed by the rules.
(3) Any portion of the reserve fund not used in the business of the society shall be invested or deposited in one or more of the ways specified in section 19 subject to such rules as the [State] Government may make in this behalf.
Subject to the provisions of sub-section (2) of section 16 a registered society may invest or deposit its funds-
Any registered society may, after the amount required by sub-section (1) of section 18 or by any rule has been carried to the reserve fund, contribute an amount not exceeding ten per cent. of the net profits to any charitable purpose, as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890):
Provided that the Registrar may, by general or special order, prohibit any society or class of societies from making any contribution under this section.
No part of the funds of a registered society shall be divided by way of bonus or dividend or otherwise among its members:
Provided that after the amount required by sub-section (1) of section 18 or by any rule has been carried to the reserve fund, the balance of the net profits, if any, together with any available profits of past years, may be distributed as dividend among members or paid as bonus or remuneration to a member for any specific service rendered to the society or used for the common benefit of members to such extent and under such conditions as may be prescribed by the rules or by-laws.
A registered society shall have a charge upon the share or interest in the capital and on the deposits or contribution of a member past member or deceased member and upon any amount payable out of profits to a member or past member or to the estate of a deceased member in respect of any debt due from such member, past member or the estate of such deceased member to the society, and may set off any sum credited or payable to a member, past member or the estate of a deceased member in or towards payment of any such debt.
Subject to any claim of the [Government] in respect of land-revenue or any money recoverable as land-revenue or as a public demand or any claim of a landlord in respect of rent or any money recoverable as rent, any debt or outstanding demand due to a registered society from any member, past member or the estate of a deceased member, shall be a first charge,-
Any debt or outstanding demand due to a registered society, authorised under clause (a) of sub-section (1) of section 16, from any non-member or the estate of a deceased non-member, shall be a first charge on the property of the non-member or belonging to the estate of the deceased non-member to the same extent and subject to the same claims, conditions and restrictions as a debt or outstanding demand due to a registered society from any member or the estate of a deceased member is, under section 23. a first Charge on the property of the member or belonging to the estate of the deceased member.
(1) A registered society may, on the death of a member, transfer his share or interest in the capital of the society to the person nominated in accordance with the rules or, if there is no person so nominated, to such person as may appear to the society or managing committee to be the heir or legal representative of the deceased member, or may pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest, as ascertained in accordance with the rules or by-laws:
Provided that-
Provided further that no payment of a sum in excess of rupees one hundred shall be made to any such heir or legal representative who has not been nominated in accordance with the rules, until the expiry of six months from the date of the death of the member or until after the decision under section 48 of any claim which may, within that period, be made by any other person.
(2) Subject as aforesaid, a registered society may pay all other money due to a deceased member from the society to such nominee, heir or legal representative, as the case may be.
(3) All transfers and payments made by a registered society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
(1) Notwithstanding anything contained in this Act, where a compromise or arrangement is proposed between a registered society and its creditors or any class of them, the Registrar may, on the application in a summary way of the society or of any creditor or, in the case of a society in respect of which an order of winding up has been passed, of the liquidator, order a meeting of the creditors or class of creditors, as the case may be, to be called, held and conducted in such manner as may be prescribed by rules.
(2) If a majority in number representing three-fourths in value of the creditors, or class of creditors, as the case may be, present either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by an order of the Registrar, be binding on all the creditors or the class of creditors, as the case may be, and also on the society, or, in the case of a society in respect of which an order of winding up has been passed, on the liquidator and on all persons who have been, or may be, required by the liquidator acting under clause (c) of sub-section (3) of section 44 to contribute to the assets of the society.
(3) If at any time it appears to the Registrar that it is expedient that any compromise or arrangement between a registered society and its creditors or any class of them, which had become final in accordance with the law in force on the date of the commencement of the Bihar Co-operative Societies (Amendment) Act, 1942 (Bihar Act 7 of 1942), or which was, after the date, sanctioned by the Registrar under sub-section (2) of this section, should, in the interest of the society or of its creditors or of the said class of creditors, be revised or replaced by a fresh compromise or arrangement, he may either of his own motion, or on the application of the society, or of any creditor, order a meeting of the creditors or class of creditors, as the case may be, to be called, held and conducted in such manner as may be prescribed by the rules, and if a majority in number representing three-fourths in value of the creditors or class of creditors, as the case may be, present either in person or by proxy at the meeting, agree to the revision of the previous compromise or arrangement, or to any fresh compromise or arrangement, the Registrar may sanction such revised compromise or arrangement or such fresh compromise or arrangement.
(4) Any revised compromise or arrangement or fresh compromise or arrangement sanctioned under sub-section (3) may be revised or replaced by a fresh compromise or arrangement in the like manner and subject to the like conditions as a compromise or arrangement may be revised or replaced by a fresh compromise or arrangement under sub-section (3).
(5) Any revised compromise or arrangement or fresh compromise or arrangement sanctioned by the Registrar under sub-section (3) or sub-section (4) shall be binding on all the creditors or the class of creditors, as the case may be, and also on the society.
(6) A compromise or arrangement under sub-section (2) or a revised compromise or arrangement or a fresh compromise or arrangement under sub-section (3) of sub-section (4) shall not be liable to be challenged, set aside, modified, revised or declared void in any Court, upon merits or upon any ground whatsoever except want of jurisdiction.
(7) The order of the Registrar calling a meeting of creditors or class of creditors, as the case may be, under sub-section (1) or sub-section (3), and the order of the Registrar sanctioning a compromise or arrangement under sub-section (2) or a revised compromise or arrangement or a fresh compromise or arrangement under sub-section (3) or sub-section (4) shall be published in the Official Gazette.
(1) No amendment of the by-laws of a registered society shall be valid until the amendment has been registered under this Act.
(2) If the Registrar is satisfied that an amendment of the by-laws is not contrary to this Act or to the rules, he may register the amendment.
(3) When the Registrar registers an amendment of the by-laws of a registered society, he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence that the amendment has been duly registered.
(1) If it appears to the Registrar that an amendment of the bylaws of a registered society is necessary or desirable in the interest of such society, he may, by order in writing to be issued to the society by registered post, require the society to make the amendment within such time as he may specify in such order.
(2) If any society fails to make any such amendment within the time specified, the Registrar may, after giving the society an opportunity of being heard, register such amendment, and issue to the society by registered post a copy of the amendment certified by him, which shall be conclusive evidence that the amendment has been duly registered, and such amendment shall be binding on the members of such society.
(3) An appeal shall lie to the [State] Government from any order of the Registrar passed under sub-section (2) within two months from the date of the issue of such order. The order of the [State] Government on appeal and, subject to the result of such appeal, if any, the decision of the Registrar shall be final.
No member of a registered society shall exercise the rights of a member unless or until he has made such payment to the society in respect of membership or acquired such interest in the society, as may be prescribed by the rules or by-laws.
(1) Subject to the provisions of sub-section (2), each member of a registered society shall have one vote only as a member in the affairs of the society, provided that in the case of an equality of votes the chairman shall have a casting vote.
(2) A registered society which is a member of any other registered society shall have as many votes as may be prescribed by the by-laws of such other society, and may, subject to such by-laws, appoint any number of its members, not exceeding the number of such votes, to exercise its voting power, provided that no member who is disqualified for such appointment under any rule shall be so appointed.
(3) Save as provided in sub-section (2), voting by proxy shall not be allowed except with the general or special sanction of the Registrar for any society or class of societies.
No member of a registered society, other than another registered society, shall have or claim any interest in the capital of a registered society exceeding one-fifth of the total capital or such smaller proportion as may be prescribed by the rules.
Subject to the provisions of section 22, the share or interest of a member in the capital of, or contribution to, a registered society shall not be liable to attachment or sale under any decree or order of a Court of Justice in respect of any debt or liability incurred by such member, and neither the Official Assignee under the Presidency-towns Insolvency Act, 1909 (3 of 1909), nor a Receiver under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to, or have any claim on, such share, interest or contribution.
(1) The transfer or charge of the share of interest of a member in the capital of a registered society shall he subject to such conditions as to maximum holding as may be prescribed by this Act or by the rules.
(2) In case of a society registered with unlimited liability, a member shall not transfer any share held by him or his interest in the capital or property of the society or any part thereof unless-
The liability of a past member or of the estate of a deceased member for the debts of a registered society as they existed on the date of his ceasing to be a member or of his decease as the case may be shall continue for a period of two years from such date.
(1) The Registrar shall audit, or cause to be audited by some person (hereinafter referred to as the auditor) authorised by him by general or special order in writing in this behalf, the accounts of every registered society once at least in every year.
(2) Every officer or member of the society shall furnish such information in regard to the transactions and working of the society as the Registrar or the auditor may require.
(3) The audit under sub-section (1) shall be conducted according to the rules, and shall include an examination of overdue debts, if any, the verification of the cash balance and securities and a valuation of the assets and liabilities of the society.
(4) The auditor shall submit a report on such examination, verification and valuation, and shall include in his report a statement of-
(5) The Registrar may determine the sum to be paid by any society towards the cost of auditing its accounts under this section, and such sum shall be paid by the society in such manner as the Registrar may direct.
The Registrar may from time to time inspect a registered society himself or cause it to be inspected by some person authorised by him in this behalf by general or special order.
(1) The Registrar may, of his own motion, and shall, on the request of the Collector, or on the application of a majority of the managing committee or of not less than one-third of the members hold an inquiry, or direct some person authorised by him by order in writing in this behalf to hold an inquiry, into the constitution, working and financial condition of a registered society.
(2) The Registrar or the person authorised by him under sub-section (1) may-
(3) When an inquiry is made under this section, the Registrar shall communicate the results of the inquiry to the society, the financing bank, if any, to which the society is affiliated and to the persons, or authority, if any, at whose instance the inquiry is made.
(1) The Registrar may, on the application of a creditor of a registered society, inspect, or direct some person authorised by him in this behalf by order in writing to inspect, the books of the society.
(2) No inspection shall be made or directed under sub-section (1) unless the applicant-
(3) Where an inspection is made under sub-section (1), the Registrar shall communicate the results of such inspection to the creditor, to the society, and to the financing bank, if any, to which the society is affiliated.
(1) A financing bank may cause an inspection to be made of the books of any registered society which is affiliated to it, and may direct such society to furnish such information, statements and returns as may be required.
(2) An inspection under sub-section (1) may be made by any of the officers of the financing bank or by any member of its paid staff approved by the Registrar by general or special order.
(3) The financing bank shall communicate the result of such inspection to the Registrar and to the society concerned.
The Registrar or any person authorised to audit the accounts of a society under Section 33 or to make an inspection or to hold an inquiry under section 34, 35, 36, or 37-
Where an inquiry is held under section 35, or an inspection is made under section 36, the Registrar may, after giving the parties an opportunity of being heard and after recording the reasons, apportion the costs of such inquiry or inspection, or such part of the costs as he may think fit, between the society, the members or creditor demanding an inquiry or inspection and the officers or former officers of the society.
(1) Where as the result of an audit under section 33 or an inquiry under section 35, or an inspection under section 34, section 36, or section 37, or the winding up of a society, it appears to the Registrar that any person who has taken part in the organization or management of the society or any past or present officer of the society has-
the Registrar may inquire into the conduct of such person or officer and, after giving such person or officer an opportunity of being heard, make an order requiring him to contribute such sum to the assets of the society [or of the financing bank, as the case may be,] by way of compensation in respect of such payment or loss or sum, or to restore such property as the Registrar thinks fit, together with such sum as the Registrar may fix to meet the cost of the proceedings under this section:
Provided that, before any order requiring such person or officer to contribute is passed in respect of a payment referred to in clause (a), reasonable time shall be given to such person or officer to recover the amount of such payment from the payee and credit it to the funds of the society, [or, as the case may be, of the financing bank]:
Provided further that no order shall be passed under this sub-section in respect of any act or omission mentioned in clause (a), (b), (c) or (d) except within four years of the date on which such act or omission occurred.
(2) This section shall apply notwithstanding that such person or officer may have incurred criminal liability under this Act or under any other law.
(3) An appeal shall lie from an order of the Registrar under sub-section (1) to the [State] Government on application made by the person or officer against whom such order was passed within three months from the date of the communication to him of such order. The order of the [State] Government on appeal, and, subject to the result of such appeal, if any, the order of the Registrar, shall be final.
(1) If, in the opinion of the Registrar, the managing committee of any registered society is mismanaging the affairs of the society, he may, by order in writing, after giving the managing committee an opportunity to state its objections, if any, dissolve the managing committee and order that all or any of its members shall be disqualified from being elected to the managing committee of the society for a period to be specified in the order not exceeding three years:
Provided that the Registrar may from time to time extend the period specified in such order for further periods not exceeding one year at a time and not exceeding in the aggregate, two years.
Every order of the Registrar under this sub-section shall state the reasons for which it is made and shall be communicated by registered post to the registered society concerned.
(2) When a managing committee is dissolved under sub-section (1), the society shall elect a fresh managing committee:
Provided that, so long as an order under sub-section (1) remains in force, no member shall hold office except with the approval of the Registrar.
(3) If the society fails or refuses to elect a fresh managing committee under sub-section (2), the Registrar, may-
(4) Nothing in this section shall be deemed to affect the powers of the Registrar to order the winding up of a society under section 42 or to cancel the registration of the society under sub-section (8) of section 44.
(5) An appeal shall lie from an order of the Registrar under sub-section (1) to the [State] Government on application made by any member of the managing committee within three months from the date of communication of the order to the registered society concerned. The order of the [State] Government on appeal, and subject to the result of such appeal, if any, the order of the Registrar, shall be final.
The Registrar may, by notification, order a registered society to be wound up if-
(1) Any member of a society, in respect of which an order under section 42 has been passed may, within two months from the date of the publication of such order in the [Official Gazette] appeal to the [State] Government from such order.
(2) An order under section 42 shall not take effect until the expiry of two months from the date of the publication of such order in the [Official Gazette] or, if an appeal be preferred, unless and until it is confirmed by notification on appeal.
(3) The order of the [State] Government on appeal and, subject to the result of such appeal, if any, the order of the Registrar, shall be final.
(1) Where the Registrar has passed an order for the winding up of a registered society, he shall appoint a person or persons to be liquidator of the society.
(2) Notwithstanding anything contained in sub-section (2) of section 13, a liquidator on appointment shall have power to take immediate possession of all assets belonging to the society and all books, records and other documents pertaining to the business thereof and to carry on the business of the society so far as may be necessary, and all the rights, duties assets and liabilities of the society shall be vested in and shall devolve upon the liquidator as such
(3) Subject to the Registrar's power of control and revision, such liquidator shall also have power,
Provided that the liquidator shall not determine the contribution, debt or assets to be recovered from any person unless an opportunity of being heard has been given to such person.
(4) If an appeal from the order of winding up is allowed by the [state] Government under section 43, the liquidator shall give up possession of the assets, books, records and other documents of the society to the managing committee, and shall cease to carry on the business of the society, provided that all his acts done in his capacity as liquidator shall continue to have legal validity as if they had been done by the managing committee or the society.
(5) With the special sanction of the Registrar, an appeal shall he to the Court of the District Judge within three months from the date of communication by registered post of an order of a liquidator under clause (b), (c), (d), (e), (g) or (h) of sub-section (3) to the person concerned.
(6) The orders of the liquidator, subject to any order of the Registrar in revision or to any order of the District Judge on appeal, the orders of the Registrar in revision and the order of the District Judge on appeal, if any, shall be final.
(7) When the affairs of the society have been wound up, the liquidator shall deposit the records of the society in such place as the Registrar may direct.
(8) After the records of a society have been deposited under sub-section (7), the Registrar shall cancel the registration of the society, and the society shall then cease to exist as a corporate body.
(1) It shall be an offence under this Act if-
(2) Any officer or member of a registered society guilty of an offence under sub-section (1) shall be punishable with fine which may extend to fifty rupees.
(1) No person or society other than a registered society shall trade or carry on business under any name of title of which the word 'co-operative' is part without the sanction of the [State] Government:
Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he traded or carried on business at the date on which the Co-operative Societies Act, 1912, came into operation.
(2) Any officer or member of a society or any person who contravenes the provisions of sub-section (1) shall be punishable with fine which may extend to fifty rupees, and, in the case of a continuing offence, with a further fine of five rupees for each day on which the offence is continued after conviction therefore.
(1) No Court inferior to that of a Magistrate of the second class shall try any offence under this Act.
(2) Every offence under this Act shall, for the purposes of the Code of Criminal Procedure, 1898 (5 of 1898), be deemed to be non-cognizable.
(3) No prosecution for an offence under this Act shall be instituted without the previous sanction of the Registrar, and the Registrar shall nor sanction the prosecution of any person unless he has given such person an opportunity of being heard.
(1) If any dispute touching the business of a registered society (other than a dispute regarding disciplinary action taken by the society fir its managing committee against a paid servant of the society) arises-
such dispute shall be referred to the Registrar:
Provided that no claim against a past member or the estate of a deceased member shall be treated as a dispute if the liability of the past member or of the estate of the deceased member has been extinguished by virtue of section 32 or section 63.
Explanation.-(1) A claim by a registered society for any debt or demand dut to it from a member, [non-member,] past member or the nominee, heir or legal representative of a deceased member [or non-member] or from sureties of members, past members or deceased members, whether such sureties are members or non-members, shall be a dispute touching the business of the society within the meaning of this sub-section even in case such debt or demand is admitted and the only point at issue is the ability to pay or the manner of enforcement of payment.
Explanation-(2) The question whether a person is or was a member of a registered society or not shall be a dispute within the meaning of this sub-section.
(2) The Registrar may on receipt of such reference-
(3) Subject to any rules, the Registrar may withdraw any reference transferred under clause (b) of sub-section (2) or referred under clause (c) of the said sub-section and deal with it in the manner provided in the said sub-section.
(4) The appointment of an arbitrator or arbitrators and the procedure to be followed in proceedings before the Registrar or such arbitrator or arbitrators shall be regulated by rules.
(5) In the case of a dispute involving property which is given as collateral security, it shall be competent to the person deciding such dispute to issue a mortgage award which shall have the same force as a mortgage decree of a competent Civil Court.
(6) Any person aggrieved by any decision given in a dispute transferred or referred under clause (b) or (c) of sub-section (2) may, within three months from the date of such decision, appeal to the Registrar.
(7) The Registrar, in the case of disputes under this section, shall have the power of review vested in a Civil Court under section 144 and under Order XLVII, rule 1 of the Code of Civil Procedure, 1908, and shall also have the inherent jurisdiction specified in section 151 of the said Code.
(8) The Registrar may, where it appears to him advisable, either on application or of his own motion, state a case and refer it to the District Judge for decision, and the decision of the District Judge shall be final.
(9) Save as expressly provided in this section, a decision of the Registrar under this section, and subject to the orders of the Registrar on appeal or review, a decision given in a dispute transferred or referred under clause (b) or (c) of sub-section (2), shall be final.
Subject to any rules, the Registrar, any person authorized to hold an inquiry under section 35 or an inspection under section 36, any liquidator, any person exercising the powers of a Registrar, or any arbitrator or arbitrators appointed under section 48, shall, in so far as such powers are necessary for carrying out any of the purposes of this Act, have power to summon and enforce the attendance of witnesses and parties concerned and to examine them upon oath and to compel the production of any books, accounts, documents or property by the same means and, so far as may be, in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1896).
(1) Where the Registrar is satisfied on the application of the liquidator or of a society that any person with intent to defeat or delay the execution of any order that may be passed against him under section 44 or 48-
the Registrar may, unless adequate security is furnished to his Satisfaction, direct the attachment of the said property or such part thereof, as he thinks necessary, and such attachment shall have the same effect as if it had been made by a competent Court.
(2) An order of attachment passed under sub-section (1) shall on the application of the Registrar, be executed by the Collector in whose jurisdiction the property lies, in the same manner as an order of a Revenue Court.
Orders passed under sections 44, 48 and 50 shall, in addition to any other method of enforcement provided under this Act, on application, be enforced as follows:-
Any sum payable by any person or by any registered society-
shall be recoverable, as a public demand in any area, in which the Bihar and Orissa Public Demands Recovery Act, 1914 (B. & O. Act 4 of 1914), is in force, or as an arrear of land-revenue throughout the whole of [the State] and the Registrar or other person authorised by him in this behalf, shall be deemed to be the person to whom such public demand is due or to whom such arrear of land-revenue is payable.
All sums due from a registered society or from an officer or: member, past or present, or from his sureties or from the estate of a deceased member of a registered society or from his sureties as such to the [Government], including any costs awarded to the [Government] may be recovered in the same manner as arrears of land-revenue.
All sums due from a registered society to the [Government] and all sums recoverable from a registered society under section 33, 39, 44 or 48 may be recovered firstly, from the property of the society; secondly, in the case of a society, the liability of the members of which is limited, from the members, past members or estates of deceased members or their sureties subject to the limit of their liability; and thirdly, in the case of other societies, from the members, past members or estates of deceased members or their sureties to such extent or in such proportion as may be determined by the Registrar.
Notwithstanding anything contained in sections 53 and 54, the liability of past members and of the estates of deceased members shall in all cases be subject to the provisions of sections 32 and 63.
The Registrar may on application or of his own motion revise any order passed by a person exercising the powers of a Registrar or by a liquidator under section 44.
(1) Save in so far as expressly provided in this Act, no Civil or Revenue Court shall have any jurisdiction in respect of any matter concerned with the winding up or dissolution of a registered society under this Act, or of any dispute required by section 48 to be referred to the Registrar, [or of any proceedings, under Chapter VII-A.]
(2) While a society is in liquidation, no suit or other legal proceeding shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof on any matter touching the affairs of the society, except by leave of the Registrar and subject to such terms as he may impose.
(3) No order of the [State] Government, District Judge, Registrar, a person appointed to assist the Registrar, liquidator, or an arbitrator or arbitrators purporting to be one, which under any provision of this Act is declared to be final, shall be liable to be challenged, set aside, modified, revised, or declared void in any Court, upon merits or upon any ground whatsoever except want of jurisdiction.
Where any debt or outstanding demand is due to a registered society from any member, past member or estate of deceased member, or is due to a registered society, which is duly authorised by the Registrar under any of the provisions of sub-section (1) of section 16 of this Act to grant loans to non-members, from any person who is not a member of a registered society or from the estate of such person if he is dead, the society may, in addition to any other remedy to which it is entitled by law, present an application to the Registrar requesting him to recover the debt or outstanding demand by distraining, while in the possession of the defaulter,-
(1) Every application under the last foregoing section shall specify-
(2) The application shall be signed and verified in the manner prescribed by the Code of Civil Procedure, 1908 (5 of 1908), for the signing and verification of plants.
(1) The applicant shall, at the time of filing an application under the foregoing sections, file before the Registrar such documentary evidence (if any) as he may consider necessary for the purposes of the application.
(2) The Registrar may, after taking such evidence as he thinks fit, admit the application or reject it.
(3) Where the Registrar cannot forthwith admit or reject an application, he may, if he thinks fit, make an order prohibiting the removal of the produce specified in the application, pending the execution of an order for distraining the same or the rejection of the application.
(4) When an order for distraining any produce is made under this section at a considerable time before the produce is likely to be cut or gathered, the Registrar may suspend the execution of the order for such time as he thinks fit, and may, if he thinks fit, make a further order prohibiting the removal of the produce pending the execution of the order for distraint.
(5) An order under sub-section (3) or under sub-section (4) shall be served and published in such manner as the [State] Government may by rules prescribe.
(1) If an application is admitted under the last foregoing section and an order for distraining any produce is made, the Registrar shall send a copy of the order containing the prescribed particulars to the Collector for execution.
(2) The Collector shall, upon receipt of the order referred to in sub-section (1), depute an officer to distrain the produce specified therein, or such portion of that produce as he thinks fit; and the officer shall proceed to the place where the produce is, and distrain the produce by taking charge of it himself or placing some other person in charge of it in this behalf, and publishing a notification of the distraint in accordance with rules to that effect made by the [State] Government:
Provided that produce, which from its nature does not admit of being stored, shall not be distrained under this section at any time less than twenty days before the time when it would be fit for reaping or gathering.
(1) The distraining officer shall, at the time of making the distraint, serve on the defaulter a written demand for the amount due and the costs incurred in making the distraint, with an account exhibiting the grounds on which the distraint is made.
(2) Where the distraining officer has reason to believe that a person other than the defaulter is the owner of the property distrained, he shall serve copies of the demand and account on that person likewise.
(3) The demand and account shall, if practicable, be served personally; but, if a person on whom they are to be served absconds or conceals himself or cannot otherwise be found, the officer shall affix-copies of the demand and account on a conspicuous part of the outside of the house in which he usually resides.
(1) A distraint under this Chapter shall not prevent any person from reaping, gathering or storing any produce, or doing any other act necessary for its due preservation.
(2) If the person entitled to do so fails to do so at the proper time, the distraining officer shall cause any standing crops or ungathered products distrained to be reaped or gathered when ripe, and stored in such granaries or other places as are commonly used for the purpose or in some other convenient place in the neighbourhood, or shall do whatever else may be necessary for the due preservation of the same.
(3) In either case the distrained property shall remain in the charge of the distraining officer, or of some other person appointed by him in this behalf.
(1) Unless the demand, with all costs of the distraint, be immediately satisfied, the distraining officer shall issue a proclamation specifying the particulars of the property distrained, and the demand for which it is distrained, and notifying that he will, at a place and on a day specified not being less than three or more than seven days after the time of making the distraint, sell the distrained property by public auction:
Provided that when the crops or products distrained from their nature admit of being stored, but have not yet been stored, the day of the sale shall be so fixed as to admit of their being made ready for storing before its arrival.
(2) The proclamation shall be stuck up on a conspicuous place in the village in which the land of the defaulter is situate.
The sale shall be held at the place where the distrained property is, or at the nearest place of public resort if the distraining officer is of opinion that it is likely to sell there to better advantage.
(1) Crops or products which from their nature admit of being stored shall not be sold before they are reaped or gathered and are ready for storing.
(2) Crops or products which from their nature do not admit of being stored may be sold before they are reaped or gathered, and the purchaser shall be entitled to enter on the land by himself, or by any person appointed by him in this behalf, and do all that is necessary for the purpose of tending and reaping or gathering them.
The property shall be sold by public auction, in one or more lots as the officer holding the sale may think advisable; and if the demand, with the costs of distraint and sale, is satisfied by the sale of a portion of the property, the order of distraint shall not be executed with respect to the remainder.
If, on the property being put up for sale, a fair price (in the estimation of the officer holding the sale) is not offered for it, and if the owner of the property, or a person authorised to act in his behalf, applies to have the sale postponed till the next day, or (if a market is held at the place of sale) the next market-day, the sale shall be postponed until that day, and shall be then completed, whatever price may be offered for the property.
The price of every lot shall be paid at the time of sale, or as soon thereafter as the officer holding the sale directs, and in default of such payment the property shall be put up again and sold.
When the purchase-money has been paid in full, the officer holding the sale shall give the purchaser a certificate describing the property purchased by him and the price paid.
(1) From the proceeds of every sale of distramed property under this Chapter, the officer holding the sale shall pay the costs of the distraint and sale, calculated on a scale of charges prescribed by rules to be made, from time to time, by the [State] Government in this behalf.
(2) The remainder shall be applied to the discharge of the amount due for which the distress was made, with interest thereon up to the day of sale; and the surplus (if any) shall be paid to the person whose property has been sold.
Officers holding sales of property under this Chapter and all persons employed by, or subordinate to, such officers and all officers and members of the staff of registered societies are prohibited from purchasing, either directly or indirectly, any property sold by such officers.
(1) If at any time after a distraint has been made under this Chapter, and before the sale of the distrained property, the defaulter, or any person making a bona fide claim as the owner of the distrained property, where he is not the defaulter, deposits with the Collector executing the order of distraint, or in the hands of the distraining officer, the amount specified in the demand served under section 57-E., with all costs which may have been incurred after the service of the demand the Collector or officer, as the case may be, shall grant a receipt for the same, and the order of distraint shall not be executed.
(2) When the distraining officer receives the deposit, he shall forthwith pay it to the Collector.
(3) After the expiration of one month from the date of a deposit being made under this section, the Collector shall pay therefrom to the applicant for distraint the amount due to him, unless in the meanwhile the person making a bona fide claim as the owner of the property distrained has instituted a suit against the applicant contesting the legality of the distraint and claiming compensation in respect of the same
When any conflict arises between an order for distraint issued under this Chapter and an order issued by a Civil Court for the attachment or sale of the property which the subject of the distraint the order for distraint shall prevail; but if the property is sold under that order the proceeds of the sale shall not be paid under section 57-N to the owner of the property without the sanction of the Court by which the order of attachment or sale was issued.
No appeal shall lie from any order passed by the Registrar or a Collector under this Chapter; but any person whose property is distrained on an application made under section 57-A, in any case in which such an application is not permitted by that section, may institute a suit against the applicant for the recovery of compensation:
Provided that, if such an order is passed by an Assistant Registrar or Deputy Registrar exercising the powers of a Registrar, an appeal shall lie to the Registrar and his decision on such appeal shall be final.
The [State] Government may, from time to time, make rules for regulating the procedure in all cases under the foregoing provisions of this Chapter.
In this Chapter, unless there is anything repugnant in the subject or context,-
The Registrar, a person exercising the powers of a Registrar, a person authorized to make an inspection under section 34 or 36 or to hold an inquiry under section 35, a liquidator and an arbitrator or arbitrators to whom any dispute is referred under section 48, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).
(1) A copy of an entry in a Book, register or list of a registered society regularly kept in the course of business, shall, if certified in such manner as may be prescribed by the rules, be admissible in evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry would, if produced, have been admissible to prove such matters, transactions and accounts.
(2) In the case of such societies as the [State] Government may, by general or special order, direct, no officer of a society shall in any legal proceedings to which the society is not a party, be compelled to produce any of the society's books, the contents of which can be proved under sub-section (1), or to appear as a witness to prove the matters, transactions and accounts therein recorded, unless by order of the Court or a Judge made for special cause.
The [State] Government may, by general or special order, delegate its power of hearing appeals under the provisions of this Act, except the power of hearing appeals under sections 26, 40 and 41, to any authority Specified in such order.
(1) The [State] Government may, by general or special order, direct that all or any registered societies situated within a specified area shall be affiliated to a Co-operative Federation in such manner and on such conditions as the [State] Government may direct.
(2) The [State] Government may, by general or special order, regulate, from time to time, the constitution and functions of any Cooperative Federation in respect of which an order of compulsory affiliation may have been passed under sub-section (1).
(1) Notwithstanding anything contained in this Act, the [State] Government may, by special order in each case and subject to such conditions, if any, as it may impose, exempt any society from any of the requirements of this Act as to registration.
(2) The [State] Government may, by general or special order, exempt any registered society from any of the provisions of this Act, or may direct that such provisions shah apply to such society with such modifications as may be specified in the order.
Notwithstanding any of the provisions of the Indian Limitation Act, 1908 (IX of 1908), the period of limitation for debt including interest due to a registered society by a member thereof shall be computed from the date on which such member dies or ceases to be a member of the society.
(1) The [Central Government], by notification in the [Official Gazette,] may, in the case of any registered society or class of registered societies, remit the income-tax payable in respect of the profits of the society, or of the dividends or other payments received by the members of the society on account of profits.
(2) The [collecting Government] may by notification remit, in the case of any registered society or class of registered societies-
In this sub-section "collecting Government" has the same meaning as in the Indian Stamp Act, 1899 (2 of 1899).
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1908, shall apply to-
(1) The [State] Government may, for the whole or any part of the [State] and for any registered society or a class of registered societies, make rules to carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may-
(3) The power to make rules conferred by this section is subject to the condition of the rules being made after previous publication.
(4) All rules made under this section shall be published in the [Official Gazette] and on each publication shall have effect as if enacted in this Act.
The enactments specified in the schedule are hereby repealed in so far as they apply to [the States] to the extent specified in the fourth column of the said schedule.